Redacted J_A.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

Security Marking (select from the drop-down list)

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NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition:

Contracting Activity: AFSC/PZAAB

Purchase Request / Local ID Number: FD2060-19-00013

Program / Project (and PE, if applicable): C-5 Trunnion Bearings

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

31 Jan 2019

Project Lead / Program Mgr / Requiring Activity Perry M. Dixon

AFMC 409 SCMS/GUMAB / DSN 468-6727

Signature

Date

15 Feb 2019

Contracting Officer Deborah S. Manly

AFMC/AFSC/PZAAB DSN 468-0797

Signature

Date

2/12/2019

Local Legal Reviewer Major Darren S. Gilkes

AFMC 78 ABW/JA DSN 472- 0575

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

22 Feb 2019

Competition Advocate Elizabeth F. Kennedy

AFSC/PZCA, 472-1102

Signature

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I. Contracting Activity.

This Justification and Approval (J&A) is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG) and the 409 Supply Chain Management Squadron (SCMS)/(GUMAB). The contracting activity for this requirement is AFSC/PZAAB. The purchase request number supporting this contracting action is FD2060-19-00013.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to acquire the C-5 Main Landing Gear (MLG) Trunnion Bearing, NSN: 3120-00-766-2056UC, listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

This action will result in the award of a new Firm Fixed Price (FFP Five (5) Year Delivery Protection Program (DPP), Indefinite Delivery (ID/IQ) type contract for re-manufacturing of the C-5 MLG Trunnion Bearing; NSN 3120-00-766-2056UC. The contract will consist of a two-year basic for the MEQ, first article, re-manufacturing option period, and two out-year option(s).

A. Special Features: DPP procedures will be utilized for this acquisition. This requirement will be a competitive effort with DPP terms. If the proven source is the successful overall best offeror, the Government will award on ID/IQ type contract with the Mission Essential Quantity (MEQ) and Out-year option(s) to the proven source. If an unproven source is the best offeror, the Government will award one ID/IQ type contract with the MEQ and out-year option(s) to the proven source and one ID/IQ type contract with the first article requirements and out-year option(s) to the unproven source.

B. Definitions:

1. DPP is a contractual vehicle which provides the Contracting Officer (CO) a means of competing the maximum practical quantity of a requirement while mitigating risk through acquiring the MEQ from a proven source to ensure continued mission support during production capability and validation from an unproven source. These items have been determined of such complexity and/or so critical that first article/pre-production testing measures are required for all unproven sources. Also, the Government has determined that a break in coverage would jeopardize support to the mission capability of operational units.

In addition, the item has a Repair Method Code (RMC) of R1 assigned. An RMC of “1” means suitable for competitive repair for the second or subsequent time.

2. A proven source is an offeror who has previously satisfactorily provided the identical item to the Government or who proposes to provide an item manufactured by the prime manufacturer or the prime manufacturer's vendor (when there is no value added by the prime manufacturer).

3. An unproven source is an offeror who has not previously satisfactorily provided the identical item to the Government and who proposes to provide an item manufactured by other than the prime manufacturer or the prime manufacturer's vendor (when there is no value added

March 2018 Security Marking (select from the drop-down list) Page 3 of 9 by the prime manufacturer).

4. MEQ is the quantity of an item needed during the time it takes to produce, test, and approve the first article. The MEQ provides a buffer to span the time while the first article is produced, tested and approved/disapproved.

5. Production option is the quantity that will be supplied by the proven source or the unproven source depending on whether or not a conforming first article was submitted on schedule.

6. MEQ options are utilized as a contingency plan for handling requirements that are not known at the time. This option is to be utilized to protect against supply shortages until a new source becomes proven.

7. Out-year options are used for future requirements needed after the MEQ production option quantities are received. Exercise of out-year options require re-approval by the local Competition Advocate.

The proven source for this requirement is:

RBC Aerospace Bearings Inc.

Address: 5675 West Burlingame Rd. Tucson, AZ 85743-9453 Cage Code: 97613 Large Business

III. Description of supplies/services required to meet agency needs.

This requirement is for the re-manufacturing production of the C-5 MLG Trunnion Bearing Assembly, NSN: 3120-00-766-2056UC, P/N: 4F23832-103A, resulting in the installation of a re-manufactured Spherical Bearing, P/N 4F9004-101A into existing serviceable condition, Housing Assembly P/N 4F23215-103A. The anticipated remanufacturing service contract will provide serviceable assets to meet the requirements for Air Force Field Level requirements and C-5 Programmed Depot Maintenance (PDM). The C-5 MLG Trunnion Bearings will support C-5 aircraft until 2040.

Under the proposed contract, RBC Bearings Inc./Sargent Aerospace and Defense, LLC. (Cage code 97613) will provide the MEQ to ensure continued mission support during the time allowed for an unproven source to successfully complete the qualification of first articles. Consolidated Sustainment Activity Group (CSAG) Defense Working Capital Funds (DWCFs) 97X4930 will be utilized. The contract is projected to award no later than 24 September 2019. Based on this the ordering validity of this IDIQ is projected to be 25 September 2019 through 24 September 2024. The total estimated cost of this acquisition can be found in the table below:

NSN: 3120-00-766-2056UC; P/N: 4F23832-103A

Description Quantity Estimated

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Unit Min/Max Unit Price Total Cost

Option 1 (MEQ)-proven source 48 Option 2 (MEQ)-proven source 48 First Articles-unproven source 2/2 Production Option 48 Out Year Option 1 56 Out-Year Option 2 48

Total Estimated:

The above estimate was developed using the latest contract re-manufacturing cost and the D200A Secondary Items Requirements System (SIRS) requirements computation system forecasted unit price calculations for March 2018. A escalation factor was applied to the estimated unit prices for all out-year option periods.

The total estimated value for this contract is . This reflects the total of all maximum quantities, including first articles, MEQ, Production Option and all out-year options.

The delivery requirements for this acquisition are 8 ea. per month, beginning 210 days after funded delivery order or reparable asset, whichever is later. There are currently serviceable assets in inventory to cover only 10 months of demand. Historically, the qualification of vendors based on first article testing and Government approval requires approximately 24 months. Use of DPP procedures will ensure there is no degradation in mission and operational supportability during the time required to qualify an unproven source.

For a service type acquisition: This NSN was screened and assigned Repair Method Code (RMC)/ Repair Method Suffix Code RMSC) of R1/C. Acquisition is the second time or more competitive and is a Source Qualification Type Item due to the cognizant C-5 engineering authority wishing to ensure the quality and integrity of the part in its intended use on the aircraft.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

This is a DPP type acquisition in accordance with AFMC MP5306.302-1 (90). The Trunnion Bearings are safety, critical type application items since it is the main pivot bearing used during the retraction and extension of the C-5 Main Landing Gear (MLG). This is a safety critical application type item, failure of which could cause the loss of aircraft and crew.

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The Government currently has enough assets in inventory to cover approximately ten (10) months of demand. Without the procurement of the trunnion bearing from the approved source of supply (while unproven source(s) are awaiting first article testing and approval) Government supply will be depleted before a new source can be qualified, resulting in backorders and a Mission Incapable Awaiting Parts (MICAP) status. The MICAPs and backorders would most likely continue to accrue until a new contractor's first article testing and qualification is approved and production begins.

The Government has determined that the requirement satisfies the following DPP Criteria:

1. A break in supply would jeopardize support to the operational units' mission capability.

2. The item has a Repair Method Code (RMC) of 1 or 2 assigned, regardless of the suffix code.

The RMC assigned to this NSN is “1” meaning it is suitable for competitive acquisition for the second or subsequent time. The acquisition method code is R1/C to ensure the quality and integrity of the part in its intended application. R1/C coding applies and requires source qualification to be performed by any unqualified source that has an interest in becoming pre-qualified for this item. Any unqualified source(s) must submit a Source Qualification Package for consideration through the cognizant engineering authority located at AFLCMC/WLSEAB, Robins AFB, GA. 31098.

3. First article testing measures are required to ensure that the new source is capable of producing a conforming part. Note: In this particular case, per the cognizant C-5 mechanical engineer, the first article must be tested at the Contractor's facility and witnessed there by the Government Engineer, or, done by an independent third party testing lab, and the results reported to the Government Engineer for his evaluation, because the testing cannot be accomplished at the Robins Engineering First Article Lab.

The Government has possession of the three, upper level, vendor-controlled, requirements drawings that were developed by the Prime Manufacturer (Lockheed Martin). The first article lab at Robins AFB, Ga. is not set up to test this type of an item and the Government does not have the internal data on how to manufacture it. The upper level vendor-controlled drawings are available to facilitate competition and were included under the advertisement on the initial Fed Biz Ops posting on 27 Feb 2018 and again on the second posting to FedBizOpps which was done on 3 July 2018 at the direction of the PCO and small business office. Although the full Technical Data Package (TDP) may not be necessary the Government requested the procurement of the TDP in early May 2018 via email to the OEM (Sargent Aerospace and Defense, LLC, Cage Code 97613), in which the OEM Program Manager replied on 7 May 2018 that their company was not willing to sell the proprietary company data to the Government.

RBC Aerospace Bearings Inc. acquired Sargent Aerospace and Defense, LLC (Cage Code 97613) in 2015. Sargent Aerospace and Defense of Dover Corporation is the only source qualified to produce and remanufacture these assets. Currently they re-manufacture this item in accordance with the Lockheed Martin drawings and specifications. Sargent Aerospace and Defense, LLC has been the re-manufacturing source for the Government on the last four contracts dating back to 2007. They have the capability and the knowledge to re-manufacture the Trunnion Bearings IAW the Governments' requirements.

To mitigate the risk of increased backorders, MICAPs, and mission degradation to the Trunnion Bearing Assembly to which they are applicable, this procurement will utilize DPP procedures. This

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J&A document provides the authority to acquire the Trunnion Bearing Assembly under the following circumstances:

A. If the successful best value offeror is an unproven source, award will be made to the unproven offeror to qualify a first article. The MEQ will be awarded to the proven source and the DPP is activated.

B. If the unproven source is the successful best value offeror and an unexpected buy generates during the time the unproven source is qualifying the first article, MEQ Option(s) may be exercised to the proven source.

C. If the unproven source is the successful best value offeror and they qualify an acceptable first article within the time specified in the contract, the Production Option(s) will be exercised to the unproven source.

D. If the proven source is the successful best value offeror, all the Government's requirements will be awarded but exercise of out-year option(s) require reapproval by the local Competition Advocate.

E. Production Options: If the unproven source fails to provide an acceptable first article within the time specified in the contract, the unproven source's contract may be terminated for default, then out-year option(s) may be exercised with the proven source if they were the next lowest offeror. Until the contract is terminated for default, Out-year options can only be exercised with the proven source after re-approval by the local Competition Advocate.

F. If the unproven source is the low offeror, the proven source is NOT the next lowest offeror, and the unproven sources does not qualify a first article, then out-year options may be exercised with the proven source only after re-approval by the local Competition Advocate.

Consideration will be given to initiation of a new competitive buy for out-year options should the unproven source fail to deliver the conforming first article on schedule, and the proven source is not the next low offeror.

The basis for this J&A and the DPP policy concept is that full and open competition will be achieved and an award will be made to the successful best value offeror, whether proven or unproven source.

The proven source however is the OEM of the data and considered the only capable source of fulfilling the required MEQs.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Source Qualification Notice was posted to Federal Business Opportunities (FedBizOpps) on 27 Feb 2018 with a closing date of 23 Mar 2018 in which one response was received. Subsequently a second SS was issued on03 July 2018 with a response date of 23 July 2018 under Solicitation Number FD2060-19-00013. The notice was posted to request any responses from any interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort.

No other additional vendors responded to the Source Qualification Notice.

The requirement will be synopsized in FedBizOpps in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer (CO) will ensure that the supplies are acquired at a fair and reasonable cost to the Government. The CO anticipates cost will be considered fair and reasonable based on adequate competition under the DPP approach. For Alternative 1 (Complete Award), the unproven source(s) will submit proposals under Proposal Schedule A and the proven source will submit under Proposal Schedule B. Proposal schedules A and B contain quantities for the entire contract period and will allow price comparisons between proven and unproven sources for evaluation purposes. Transition to Alternative II will only occur if a proposal under Alternative I, Proposal Schedule A is considered to be the best overall value. Prices submitted under Alternative I and II will be evaluated for reasonableness, balance and total evaluated price. In the event that competition is not realized, meaning only one proposal is received under either Proposal Schedule A or B and not both, the contractor will be required to provide certified cost or pricing data in accordance with FAR 15.403-4.

Cost and price analysis will be conducted and audits will be performed by Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA), as required. The contract price(s) will be negotiated in accordance with the procedures of FAR 15, ensuring the ultimate price(s) to the Government is/are fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market Research was conducted and completed 04 September 2018 in accordance with FAR Part

10.001 and 10.002. The initial market research began in February 2018 with a sources sought synopsis (SSS) with the available top level drawings posted to FedBizOpps on 27 Feb 2018. The SSS closed on 23 Mar 2018. One vendor, ES3 Corp. responded to the first sources sought synopsis and submitted a package of interest. ES3 Corp. package was evaluated for their capability by C-5 Engineering, and were determined to not be a current pre-qualified source for the C-5 MLG Trunnion Bearings. They are a small business source acting as a representative for a large business source, Kamatics Corp., who has no recent history of performing remanufacturing type work for C-5 Main landing gear, trunnion bearings. Per the cognizant mechanical C-5 engineer, he had no record of them submitting a Source Approval Package or a pre-production sample within the last ten (10) years. ES3 and their teaming partner, Kamatics Corp., are considered an unproven source that has the potential to qualify for this item.

The first sources sought type posting was done in error per the small business office and the requirements for MLG trunnion bearings had to be reposted again as a Source Qualification Notice on 03 July 2018 under Solicitation Number FD2060-19-00013. That posting closed on 23 July 2018 with no additional sources expressing an interest in the requirement.

Market research techniques used were as follows: As described in Section VI above, a Source Qualification Notice was posted to FedBizOpps advising industry of the pending acquisition and soliciting inquiries from interested vendors. Queries were conducted within Government databases

March 2018 Security Marking (select from the drop-down list) Page 8 of 9 and various internet searches were performed for NSN: 3120-00-766-2056UC/part number 4F23832-103A in search of potential sources. The websites reviewed were as follows:

http://www.sargentaerospace.com http://www.thomasnet.com http://www.google.com http://www.rbcbearings.com http://www.boeing.com

Although ES3 responded to the RFI, due to the unique nature of their company, they did not emerge through the internet searches and queries conducted as a potential qualification source. They were only revealed as a potential unproven source due to their teaming arrangement with Kamatics Corp via the RFI response. No other sources other than the one pre-qualified source, RBC/Sargent Aerospace and Defense, LLC, Cage Code 97613, were found to be currently qualified.

A SBA Dynamic Small Business Search (DSBS) query was conducted utilizing North America Industry Classification System (NAICS) code 336413 with keyword landing gear and trunnion bearings. The search performed on this query did not result in any potential small business sources.

The one small business source, ES3, who responded to the RFI was determined potentially capable only after teaming with their larger partner, Kamatics Corp.

The C-5 Main landing gear, trunnion bearing, does not fit the definition of a commercial item as defined in FAR Part 2.101. This item is defined as military unique and is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar components.

The market research concluded RBC Aerospace Bearings Inc. who acquired Sargent Aerospace and Defense, LLC, formerly DBA as Dover Engineered Systems and Kahr Bearings, and who is the source under the current long-term contract, is the only pre-qualified source capable of fulfilling the Government's MEQs. Market Research revealed that there are sources with the potential to qualify and therefore the DPP acquisition approach will be utilized.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VI above.

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XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

The proposed competitive acquisition strategy will utilize DPP procedures to ensure the continuation of mission support while a new source qualifies. It will allow for simultaneous award of ID/IQ contracts to the proven source, RBC Aerospace/Sargent Aerospace and Defense, LLC, Cage Code 97613, to satisfy immediate requirements and to an unproven source for first article and optional production requirements in the event an unproven source is the low offeror. If RBC Aerospace/Sargent Aerospace and Defense, LLC is the best value, only a single production contract will be awarded. If the best value offeror is an unproven source and they cannot deliver in a timely manner, experience conformance issues, or fails first article testing, the Government has the ability to exercise option(s) to continue sustainment of the program with the proven source. Unless the proven source's contract is terminated for default, exercise of out-year option(s) to the unproven source requires re-approval by the local Competition Advocate.

There are no current barriers to competition. All future requirements will be competed using full and open competition procedures among qualified sources or the DPP procedures, as appropriate. The C-5 Trunnion Bearing program is projected to have a life expectancy through 2040.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.